MITI exploring most appropriate mechanism for EV levy, did not say it would be imposed on the public – Johari

Malaysia’s investment, trade and industry ministry (MITI) is currently exploring the best ways to implement a proposed EV levy to support the construction of more public chargers nationwide, Bernama reports.

“We did not say that we will impose the proposed EV levy on the public. We are still looking at the most appropriate mechanism. However, if those costs are imposed on manufacturers, they will ultimately pass them on to consumers.

MITI exploring most appropriate mechanism for EV levy, did not say it would be imposed on the public – Johari

“The question is at what level the charges should be set, how much they will amount to, and how much longer the government can continue providing subsidies,” MITI minister Datuk Seri Johari Abdul Ghani told reporters at RHB Bank’s ‘RHB Progress Series 2026’ conference today, adding that the government has provided numerous subsidies and must also build charging infrastructure.

“All these involve the cost of electricity, gas, coal and other inputs. This needs to be understood. Many people fail to appreciate the broader picture because they only see one side of the issue,” he said, adding that the government must consider the bigger picture to ensure EV-ICE co-existence.

MITI exploring most appropriate mechanism for EV levy, did not say it would be imposed on the public – Johari

“Malaysia also remains reliant on gas and coal-fired electricity generation. As such, the development of the EV ecosystem must take into account the cost of electricity supply and the infrastructure required.

“The government is also operating under a fiscal deficit. When we are running a deficit, how are we going to fund it? Where will the money come from? One option is to impose a levy on vehicle manufacturers. However, if manufacturers are charged, they will ultimately pass the additional costs on to consumers,” said Johari.

MITI exploring most appropriate mechanism for EV levy, did not say it would be imposed on the public – Johari

Yesterday, the minister said in parliament: “We may impose a levy on every EV sold and channel the proceeds into a dedicated fund to build public charging stations because we cannot rely solely on vehicle manufacturers or distributors to undertake such investments.”

I was told that China spent billions to build chargers. But if we want the government to do that here, we don’t have the money,” he stated then.